Business, 02.12.2020 17:10 gonzalezjacquel7975

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 266 78 Desired inventory (units), June 30 306 68 Expected sales volume (units): Midwest Region 3,450 3,050 South Region 5,300 6,000 Unit sales price $100 $185 a. Prepare a sales budget.

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Answer from: yere144k

a. Sales budget

Product and Area Unit Sales Volume Unit Selling Price Total

Model Rumble:

Midwest Region 3,450 100 $345,000

South Region 5,300 100 $530,000

Total $875,000

Model Thunder

Midwest Region 3,050 185 $‭564,250‬

South Region 6,000 185 $‭1,110,000‬

Total $‭1,674,250‬

Total Revenue from sales $‭2,549,250‬

b. Production budget

Units Model Rumble Units Model Thunder

Expected units to be sold ‭8,750‬ ‭9,050‬

Total Units Required ‭9,056‬ 9,118

Total Units to be Produced ‭8,790‬ ‭9,040‬

Expected units Rumble = 3,450 + 5,300 = 8,750

Expected units Thunder = 3,050 + 6,000 = 9,050

Total Units required Rumble = 8,750 + 306 (desired inventory) = 9,056

Total Units required Thunder = 9,050 + 68 (desired inventory) = 9,118

Total units to be produced Rumble = 9,056 - 266(opening inventory)= 8,790

Total units to be produced Thunder = 9,118 - 78 (opening inventory) = 9,040

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following productio

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Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following productio...

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